130 Republicans in Congress, including a wide range of members from Sen. Mitt Romney to Rep. Lauren Boebert, are calling on the Biden administration to withdraw $147 billion in student loan bailouts. They argue that this bailout is even broader than a previous attempt struck down by the Supreme Court and would force taxpayers to take on the debt of nearly 28 million borrowers. The lawmakers, led by House Education and Workforce Committee Chairwoman Virginia Foxx and Senate Health, Education, Labor and Pensions Committee ranking member Bill Cassidy, believe that the administration is using borrowers as political pawns and that these proposed actions are illegal.
The Supreme Court previously struck down President Biden’s attempt to cancel $430 billion in student loans, arguing that there is zero authority to write off federal student loans en masse. As a result, the Education Department has taken a piecemeal approach to writing off the debt based on the Higher Education Act of 1965. However, the Republicans argue that this approach relies on creating extensive regulations based on outdated statutory text. They claim that the administration previously deemed this approach less likely to hold up in court than their initial plan.
Despite the opposition from Republicans, President Biden remains committed to providing relief to borrowers. He pledged during his 2020 campaign to forgive portions of federally held student loan debt, and Education Secretary Miguel Cardona has reiterated the administration’s commitment to providing relief as quickly as possible. However, Republicans have criticized these efforts, accusing the administration of buying votes by canceling debt.
According to the Committee for a Responsible Federal Budget, the cost of President Biden’s student loan forgiveness could range from $870 billion to $1.4 trillion when considering his latest debt cancellation move and previous programs like the Saving on a Valuable Education (SAVE) plan. So far, $620 billion has already been canceled through various programs. The SAVE plan, an income-driven repayment plan, will forgive up to $25,000 in debt on average for households earning more than $312,000 in annual income.
As of now, the Education Department has not responded to requests for comment on the matter.
